Like all businesses and sentiment/history aside, if it is not paying its way then it has to go. But why close Bankstown instead of Melbourne to avoid the duplication? There had to be some carrot dangled in front of Boeing to favour Victoria.
Longer term I cannot see how Melbourne can compete against lower cost bases in Asian countries either, so if I was employed at Bankstown I would not be rushing to relocate there as it will only be a matter of time before this goes as well. But if you really want to be a LAME, then you will relocate to where the work is.
Trust all who loose their jobs will soon find new positions.